Allentown zoners approve Butz's $10M expansion downtown

Devon Lash, Of The Morning Call

Alvin H. Butz Inc., who sources have said will be construction manager of the Allentown hockey arena, won approval Wednesday to tear down its neighboring Hamilton Street buildings in order to more than double the size of its downtown headquarters.

The Allentown Zoning Hearing Board unanimously permitted the request, saying the company had proven why it should be allowed to demolish the buildings and rebuild.

Butz wants to use two buildings, including the one that used to house the Alliance for Building Communities, to create a mirror image of its 840 Hamilton St. headquarters. The $10-million, six-story addition could draw another dozen businesses and 200 employees to center city, President and CEO Greg L. Butz said in announcing the expansion earlier this year.

The company needed a special exception for the demolition and to expand the parking lot with spaces that are one-foot smaller than the standard spots.

"There's a lot of exciting things happening downtown and this is small in relation to it but every little bit helps," Butz said.

He said the company has no tenants slated for the addition yet, but with 90 percent of the current Butz headquarters occupied, the company believes there's demand for space.

The Neighborhood Improvement Zone, a 130-acre district that allows state non-property taxes to be used for construction costs, was a major factor in the decision to expand.

He said the company will pursue improvement zone financing from the overseeing city authority, allowing it to offer cheaper rental space. The project also will be financed by a $3 million state grant from the Redevelopment Assistance Capital Program.

Butz said the demolition and expansion could begin later this month, depending on city Planning Commission approval on Tuesday. He said the company would like to see it completed by the end of the year.

The 8,500-seat hockey arena is aiming to be completed by fall of 2013, and sources say Butz will be the construction manager, beating out two national builders.

The 50,000-square-foot expansion will include retail space on the first floor and office space on the five other floors. A private partnership of Butz family members purchased the properties in July for $450,000.